2 growth shares to research this weekend

I’m always on the lookout for growth shares on my watchlist that are trading at attractive value. The recent share market fall due to rising interest rates and the trade war has sent many share prices down. Here are two of the shares I’m close to buying: Challenger Ltd (ASX: CGF) Challenger is the country’s leading annuity business. It turns a retiree’s capital into a guaranteed source of income. The demand for annuities is expected to increase significantly over the coming years with the number of retirees projected to grow by 40% over the next decade. The government has introduced…

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BWX is Australia’s leading natural beauty business with its Sukin range of products. It has also recently acquired a number of other businesses to help it grow including US-based Andalou Naturals and Mineral Fusion, as well as online retail platform Nourished Life.

The company has a good opportunity to grow Sukin in the US and grow the US brands in Australia and other countries.

Natural beauty is growing at an even faster pace than the ‘normal’ beauty sector. BWX may be able to look forward to long-term organic growth as it expands its product ranges and eventually looks to Asia for the next stage of development.

The failed takeover attempt by Bain has knocked confidence in the business, but I think it looks attractive trading at 13x FY19’s estimated earnings with a grossed-up dividend yield of 3%.

Foolish takeaway

With attractive valuations, decent dividend yields and long-term growth potential, I believe both of these shares could be on your watchlist (or in your portfolio) as long-term holds – at least for the next five years or so.

Another growth share that could be great to hold over the coming years is this hot stock.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Motley Fool contributor Tristan Harrison owns shares of BWX Limited and Challenger Limited. The Motley Fool Australia owns shares of and has recommended BWX Limited and Challenger Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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